CHFJPY | Perspective for the new weekThe Swiss have been Bullish in the last 8 weeks and I suspect a temporary correction is evolving with anticipation of a rally continuation in the coming week(s). Therefore, we shall be looking for the completion of the reversal pattern sighted on the Daily chart to take advantage of a counter-trend opportunity this new week.
Tendency: Downtrend (Bearish)
Structure: Supply & Demand | Reversal pattern (Head & Shoulder)
Observation: i. After hitting a peak @ JY125.500 at the beginning of this month, I observed that buyers lost momentum as this is evident in price action afterwards and this is assumed to be "quick sells" from participants who took advantage of the last Bullish run.
ii. Since the beginning of the month of November 2021, price continued to find lower highs which evolved into a Head and Shoulder look-a-like structure.
iii. Technically, the appearance of a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal.
iv. Noticing a baseline with three peaks at this juncture in the market, where the outside two are close in height and the middle is highest requires a little more patient before a decision is made.
v. Below key level @ JY123.500 remains my yardstick for the bearish expectations; In this regard, we shall be awaiting confirmations for entry if the price falls below the support level @ JY123.500 (Key level) to signal Bearish tendency in the coming week(s).
vi. However, it is worthy to state here that the early hours/days of the new week might see price climb to test the Supply level I have identified around @ JY123.500/124.500 to incite further decline.
NB: Considering the fact that it is a Bullish trend from a long-term perspective it is appropriate that we remain conscious with locking profits at appropriate zones to avoid unexpected spikes that could incite rally continuation ... Trade consciously!😊
Trading plan: SELL confirmation with a minimum potential profit of 200 pips.
Risk/Reward : 1:4
Potential Duration: 7 to 15days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
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Past performance is not necessarily indicative of future results.
